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Modigliani-Miller theorem repealed, reports PBS

Summary:
Link here. In case you don't get it, see previous posts on buybacks here and here, that explain how buybacks do not affect share prices, and certainly cannot cause the rise since 2008.Thanks to a correspondent for the pointer.

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Modigliani-Miller theorem repealed, reports PBS

Link here. 

In case you don't get it, see previous posts on buybacks here and here, that explain how buybacks do not affect share prices, and certainly cannot cause the rise since 2008.

Thanks to a correspondent for the pointer.
John H. Cochrane
In real life I'm a Senior Fellow of the Hoover Institution at Stanford. I was formerly a professor at the University of Chicago Booth School of Business. I'm also an adjunct scholar of the Cato Institute. I'm not really grumpy by the way!

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